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Old Mutual to resist legal action by US insurer Travelers
Old Mutual said it would resist a legal claim made against it by Travelers, the US insurer, related to assets Old Mutual sold in 2011.
The FTSE 100-listed financial services group said Travelers and its St Paul Fire and Marine Insurance business "lodged a claim in the United States district court for the Southern District of New York in relation to pre-existing plc head office legacy items relating to previously disposed of US assets".
The dispute concerns indemnities regarding policies at F&G Life. Old Mutual bought F&G Life from St Paul in 2001 and sold the business to Harbinger Capital in 2011. Old Mutual did not give further details or say how much Travelers was was seeking in its action.
Old Mutual said it believed the action was without merit and that it would resist. The company said its planned break-up remained on track for "material completion" by the end of 2018.
Old Mutual announced a plan in March 2016 to split itself up. Having sold its stake in US-based OM Asset Management it will be divided into emerging markets financial services; Nedbank, one of South Africa's biggest banks; and Old Mutual Wealth.